First, they sold out those lil' chinese people by filtering chinese searhc results.
Second, they're handing over all private data of every user to the govenrment with a simple subpeona (not even a warrant).
What information does Google hold... every search term entered by date, IP and associated Google login. 2GB of email, text extract of all files on user's PC running Google Desktop.
What does Google Privacy Policy say? Its changing all the time, but what remains unchanged is they'll be pooling all the information they collect on you from all of their various services. Moreover, they may keep this information indefinitely, and give this information to whomever they wish. All that's required is for Google to
have a good faith belief that access, preservation or disclosure of such information is reasonably necessary to protect the rights, property or safety of Google, its users or the public.
It's amazing how a vague privacy policy, a minimalist browser interface, and an unconventional corporate culture have convinced so many that Google is different on issues that matter.
After 180 days in the US, all data lose their status as a protected communication under the Electronic Communications Privacy Act, and become just another database record. This means that a subpoena instead of a warrant is all that's needed to force Google to produce a copy. Other countries may even lack this basic protection, and Google's databases are distributed all over the world. Since the Patriot Act was passed, it's unclear whether this ECPA protection is worth much anymore in the U.S., or whether it even applies to email that originates from non-citizens in other countries.
Google is evil. :(